Countries implementing digital ID coverage could witness GDP growth by 3-6% in the year 2030. Based on a study, digital IDs can add-on to the country's valuation by enabling robust economic flow and encouraging the involvement of people in services, providing digital increment that needs credibility.
Introduction
In this rapidly evolving world, Technology and data are changing our day-to-day life. One thing will always remain constant- the right to identity. The right to identity is a human right that will not be unaltered. However, technology should completely transform our identity for economic growth, access to public and private services, and involvement in a digital society.
According to the World Bank’s global dataset, approximately one billion people across the world do not have any identity. The majority of the population belongs to developing nations, specifically economically marginalized groups. Thus, providing DI to people can add-on to inclusion, formalization, and transparency.
The McKinsey Global Institute’s complete study “Digital Identification: A Key To Inclusive Growth” offers a detailed analysis of the economic and social impact that the Good ID system can provide. With the help of Omidyar Network and other expert groups, they have carefully stated the role of digital ID in the growth of countries. The six crucial models include commercial providers, employers, public and private services, and landowners. There are other significant factors, including high labor forces, time-consuming, agricultural productivity, and access to employment.
The advisors have carefully selected seven developing and developed countries. After the implication of digital ID cards, the study states that 1.7 billion people get access to financial services, streamlined government operations have saved 110 billion hours, and a complete 20% reduction in payroll fraud.
For developing nations, the digital ID provides scope for the increment of 3-6% GDP in 2030, based on the report. Much of this can be easily obtained by digital ID authentication. For strong economic countries, digital ID provides data-sharing features which reduce the workload of the government.
The economic growth of digital ID can’t come at the price of the privacy of people. Privacy leads to credibility that plays a pivotal role in economic growth, the study revealed that Not only developed nations have adopted it, but also developing countries
Digital ID technology, developed with the right principle, enables the right policies, protects countries’ people from crime, and offers the involvement of billions in economic growth. As technology evolves, it will require more transformation to overcome the hurdles and evaluate how stakeholders respond.
There are many things to do to fulfill the empowerment policies of digital ID. We think that the McKinsey Global Institute study is significant for institutions and private companies working toward implementing digital ID systems.
